Faruqi & Faruqi, LLP Announces Investigation of Camelot Information Systems Inc. (CIS)
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Camelot Information Systems Inc. (“Camelot” or the “Company”) (NYSE: CIS).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company’s IT professionals did not enjoy a competitive advantage; (2) Camelot was suffering from significant employee attrition; (3) Camelot’s difficulties concerning its employees affected the Company’s ability to either retain or attract new customers; (4) Camelot did not have as many highly trained professionals at its disposal as it represented; and (5) Camelot’s contract with IBM, its most important customer, was not robust and would not be renewed on the same terms.
On August 15, 2011, Seeking Alpha published an article questioning several key components of Camelot’s business. This caused Camelot shares to drop below $9 compared to $19.50 per share at the Company’s December 9, 2010 Secondary Offering. Then on August 18, 2011, Camelot issued a press release announcing its second quarter 2011 unaudited financial results, including lower-than-expected guidance for fiscal year 2011. On this shocking news, Camelot’s ADSs dropped $2.24 per share to close at $6.32 per share on August 18, 2011, a one-day decline of 26%.
If you purchased Camelot securities between July 21, 2010 and August 17, 2011 and would like to discuss your legal rights, you can contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Camelot’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.